You say ‘Gold’ and eyes light up. The shiny yellow metal has a hold over the human psyche like no other. Gold fever is an incurable malady that has gripped the world since ages. Investing in gold is one of the safest investments in the world as the shiny metal never loses its sheen in the world market. In fact, at the present moment, gold has attained its highest price ever, till date. A lot of gold is molded in an alloy form to create jewelry items and other objects like watches. This alloy gold, inferior in terms of purity, compared to pure gold bars or pure gold coins ends up as scrap gold. It can still fetch a substantial amount of value and if you are thinking of trading in this business, you must be looking for tips on buying scrap gold.
With the gold price appreciating substantially, there are opportunities for making profits, like never before. A lot of people have scrap gold in the form of old jewelry and other items, which can be sold for a substantial profit. Many people buy and sell gold scrap for a living and if you are planning to enter such a business, you need to know where to buy scrap gold.
Gold Scrap Valuation
Gold purity is measured in terms of karats (Kt), with 24 Kt being the purest and the purity decreasing with lowering of karat value. The price offered for gold differs according to its karat value and therefore it’s essential that you determine the karat value of any scrap gold, before you buy it. Every gold item has its karat value stamped over it, which can be observed using a magnifying glass.
A precision balance, which can measure weight in minute fractions, up to 4 or 5 decimal places, is a necessary piece of equipment, that you must purchase if you are planning to enter this business. Also check out the gold pricing according to weight in troy ounces according to karat valuation, to make sure that you are paying the right price for the gold item.
How to Buy Scrap Gold Jewelry?
You can invest in gold directly by purchasing gold bars, coins or investing in gold stocks and exchange traded funds. However, if you are looking for scrap gold to sell for profit, you will have to scan other sources, which have been listed in the following lines.
Local Pawn Shops
Pawn shops are your best source of gold scrap. Visit your local pawn shops to get access to a wide variety of scrap gold items on sale.
Online Auction Sites
Auctioning websites like eBay have people selling scrap gold. You can take advantage of such auctions to get hold of scrap gold at a reasonable price. Verify the past track record of the seller and verify the gold quality before making a purchase.
Local Jewelry Shops
While most local jewelry shops will sell scrap gold to suppliers for smelting, some do put them up back on sale. Check out your local jewelry stores which specialize in buying and selling scrap gold items.
Online and Print Classifieds
Many gold scrap sellers often advertise in print and online classifieds as an outreach program to find buyers. So check out online and print classifieds for such offers.
Advertise Scrap Gold Purchase Offer
Another way of getting people to sell their hoard of scrap gold to you is through placement of advertisements in print and online classifieds. This is bound to get you a lot of sellers from your local area.
It’s necessary that you get acquainted with gold scrap valuation methods or you may end up paying large amounts for a worthless piece of junk! As suggested before, get hold of a precision balance and a magnifying glass to evaluate the purity of scrap gold. By piling up scrap gold from various sources, you can sell it to make a sizable profit. May your ‘Golden’ dreams be turned into reality!